What is a dormant bank account? Will funds in my dormant bank account go to unclaimed moneys?
Banking institutions in Malaysia classify a savings or current account as dormant
where there have been no transactions 1, either a withdrawal or deposit, in the account for one (1) year.
Banking institutions may impose a fee on dormant savings and current accounts.
For accounts with balances of RM10 and below, banks may close these accounts and absorb these balances as a charge.
For accounts with balances of above RM10, banks may charge:
- an annual service fee of not more than RM10; and
- a service or maintenance charge not exceeding RM10, imposed every six (6) months on current accounts;
until the remaining balances are sent to the Registrar of Unclaimed Moneys after a period of seven (7) years.
Prior to transferring the funds to the Registrar of Unclaimed Moneys, the account holding banks will send notices to the customer requesting them to reactivate or close the account. If no response is received, the bank will stop sending corresponding to reduce the risk of fraud. The account will then be classified as "unclaimed moneys."
In the event that an account does goes to unclaimed moneys, however, customers can claim their money on application to the Registrar of Unclaimed Moneys
- Transactions initiated by the bank such as interest, fees and charges are excluded.
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